The yield on a bond is composed of accrued interest (coupon)...


...and capital gain or loss. Government bonds and many other bonds are often issued below their face value, while the face value is repaid. The yield is calculated from this difference and the accrued interest. Bonds are often traded below their maturity date, and the price is determined by supply and demand.

Daily calculation:
Days per Year
kalendermäßig
 360 Days per Month kalendermäßig 30
Capitalization:
Annually
Semi-annually
 Quarterly Monthly None
Delete entries
Calculate
?
Acquisition price (Price)
%
Redemption price
%
Par value (Nominal amount)
Interest rate:
% p.a.
Purchase date
Maturity date
Coupon period
Last coupon payment before purchase
Price gain
Accrued interest on purchase
Accrued interest on sale
Coupon interest
Investment period
 Days
Total profit
Return in %:
 % p.a.
Payments and repayments
Date
Amount of Money
Description
copyright: studio-3b - prettau - southtyrol - italy - http://www.webfinancialtools.de

Calculating the yield on bonds:


Government bonds, corporate bonds, and other bonds are often issued 'below par,' meaning below the face value of the security. The interest is calculated on the face value. On the coupon payment date, the accrued interest is paid out, and the principal is repaid at the end of the term. These bonds are often traded on the stock exchange. Depending on interest rate developments and other factors, the price of the bond, and therefore the purchase price, changes. If such a security is purchased before its maturity date, the buyer must pay not only the purchase price but also the accrued interest from the last coupon payment date to the date of purchase. In return, they receive all the accrued interest at the next coupon payment date. While holding the bond, they receive the accrued interest at each coupon payment date. If they sell the security before maturity, they receive the sale price as well as the accrued interest from the last coupon payment date to the date of sale. This calculator allows you to calculate the bond's yield to compare it with other investment options.

1) Purchase Price:Enter the purchase price. This is a percentage of the bond's face value.

2) Redemption Price: Enter the bond's redemption price. This is usually 100 percent, but it can also be higher or lower.

3) Nominal Value: Enter the nominal value of the bond. Accrued interest is calculated on the nominal value.

4) Interest Rate: Enter the interest rate of the bond.

5) Purchase Date: Enter the purchase date of the bond. The seller receives accrued interest from the last coupon payment date before the purchase until the purchase date.

6) Sale Date/Maturity: Enter the sale date of the bond. The seller receives accrued interest from the sale date until the next coupon payment date. If the security is not sold, enter the return date (maturity date) of the security.

7) Coupon Period: Select the coupon period, depending on whether the coupon payment date is annual, semi-annual, quarterly, or monthly.

8) Last Coupon Payment Date Before Purchase: Enter the date of the last coupon payment date before the purchase.




Calculate: Click 'calculate' to calculate the bond's profitability.


Results: 1) Investment Period: The period from the purchase to the sale of the bond in days is displayed.

2) Accrued Interest at Purchase: The accrued interest from the last coupon payment date before the purchase until the purchase date is displayed. The buyer must pay this interest in addition to the purchase price.

3) Capital Gain: The difference between the purchase price and the nominal value of the security.

4) Accrued Interest on Sale: The accrued interest from the date of sale until the next coupon payment date. The seller receives this interest in addition to the sale price.

5) Coupon Interest: The coupon interest that the holder of the security receives during the period of ownership.

6) Total Profit: The difference between the capital invested and the capital received.

7) Yield: The effective interest rate of the bond, taking into account capital gains and accrued interest. The yield allows for an objective comparison to other forms of investment.

Legal Notice - Contact - Liability - Privacy Policy

Interesting Links - Link Exchange

Studio 3b - Wiese 79 - 39030 Prettau
info@webfinancialtools.de